The new prime minister, his National ministers inside cabinet
and support party ministers outside cabinet were sworn in by Governor-general
Anand Satynand in time for Mr Key to attend the APEC
leaders meeting by 20 November.

On 9 December the Governor-general opened the 49th Parliament and read
the Speech from the Throne. The Speech was written, according to convention,
by the government. On 8th December the Parliamentarians had elected
their Speaker for the anticipated three year term of this Parliament,
Dr Lockwood-Smith, a National MP. Parliament elected National MP Lindsay
Tisch as deputy Speaker, National MP Eric Roy and Labour MP Rick Barker
as assistant Speakers.

Members speaking to congratulate the Speaker's team referred to their
role in maintaining freedom of speech and impartial conduct of Parliament's
business.

The opening of Parliament was televised on Parliament TV. This convention,
and the recent experience and forward prospect of televising Parliament
all the time, is a development for which the immediate
past Speaker, Margaret Wilson, must be credited. She and previous
Speakers have worked to increase citizenship education.

The election and government formation process were conducted under the
mixed member proportional (MMP)
system, and its associated evolving
conventions. Electors had two votes, one for their preferred electorate
candidate and one for their preferred party. Half the seats in a normal
120 seat Parliament are held by MPs selected for party lists. The size
of New Zealand’s 49th Parliament is 122 seats, an increase of two
seats over the normal 120 seats. The additional seats are because the
Maori Party won more electorate seats (five seats) than its entitlement
under the party vote (three seats).

Referendum on MMP
The Governor-general said in the December 2008 Speech from the Throne
"My Government's confidence and supply agreement with the Maori Party
further sets out its intention to establish a group to consider constitutional
issues including Maori representation.

In addition to a consideration of these issues, it will give New Zealanders
the chance to have their say on the Mixed Member Proportional representation
system that has formed the basis of this country's parliamentary elections
since 1996.

This will take the form of a binding referendum, and if a majority of
voters decide they want to consider other electoral systems, the new Government
will offer them a choice of a range of systems to replace it."

Participation in voting
The Chief Electoral Officer declared the successful
candidates in the official results for the 2008 General Election on
22 November 2008.The 2008 turnout as a percentage of enrolled electors
was 79.46 percent (2005 – 80.92 percent). Special votes totalled
270,965 or 11.4 percent of total votes cast.

Decisive result under MMP
National won 59 on election night adjusted in the final count to 58, Act
five, Maori five and United Future parties one seat. Mr Key commands a
majority in the single chamber Parliament with 69 seats.

Labour won 43, Green eight on election night adjusted to nine in the
final count, Progressive one, putting 53 MPs onto the opposition benches.
New Zealand First won no seats, attracted 4.21% of the vote and Act, which
attracted 3.72% of the votes, ended up with its five seats. Under the
MMP system, parties who get less than five percent of the vote do not
get into Parliament unless they win an electorate seat. Act’s leader
Rodney Hide won the Auckland seat of Epsom, and New Zealand First’s
leader Winston Peters lost his bid to regain the Tauranga seat.

Financial crisis, a sword of Damocles
The election campaign coincided with the globally significant financial
crisis, with its credit crunch leading to threats to the real economy,
recession, and uncertainty. Helen Clark, who had been Prime Minister for
the previous nine years, appealed to New Zealand electors to trust her
to provide proven leadership and management skills for the economy in
the uncertain times ahead. John Key, with only two years as National Party
leader in succession to former Reserve Bank governor Dr Don Brash, made
limited reference to his experience in foreign exchange trading as a reason
for the electorate to trust him.

"This cluster of Ministers and related portfolios demonstrate that
getting the economy going will be front and centre of our priorities in
office" Mr Key said in announcing his new ministry.

Mr Key's acute awareness of the economic challenges is well placed, and
draws the Sword of Damocles,
a classical Greek legend, to mind. The Sword of Damocles is frequently
used to epitomise the imminent and ever-present peril faced by those in
positions of power. More generally, it is used to denote the sense of
foreboding engendered by the precarious situation, especially one in which
the onset of tragedy is restrained only by a delicate trigger or chance.

"I am acutely aware that the economic challenges we face include
forecasts which show rising unemployment. National wants to provide New
Zealanders with some financial security in hard times. That is why we
announced the transitional relief package during the election campaign
to help those worst hit by redundancy, and why it will be implemented
in government" the new PM said.

The electorate’s decision to provide a clear majority to John Key’s
National Party meant that he was able to negotiate to form a government
without the competition from his opponents that had characterized previous
elections under MMP. One strong view, led by business leader Peter Shirtcliffe,
presented to the electorate in the 1990s when it chose MMP to replace
the first past the post system (FPP) was that decisive government, including
economic management, would be undermined. National went into the 2008
election campaign calling for a referendum on the future of MMP. The more
multicultural and gender balance in the Parliament now is a consequence
of MMP. So too are the evident inconsistencies shown by the place of Act
inside this Parliament, and NZ First’s place outside it.

Balancing Act, Maori and UnitedFuture
The Act Party includes former Labour finance minister, Sir Roger Douglas,
architect of “more market” reforms introduced in the Lange
government elected in 1984. Mr Key, avowedly favouring centrist policies,
ruled out a place in his cabinet for Sir Roger, signaling his view that
his electors thought Act policies should not tug him too far to the right.

The Maori Party is supported by a majority of electors who were said
by pre-election pollsters to favour Maori Party accommodation post election
with Labour. Labour did not get enough electoral support, or indications
of minor party support, to be able to form a government in November 2008.
Maori consulted in a culturally appropriate way, through hui, and co-leaders
Dr Pita Sharples and Mrs Tariana Turia, opted to be ministers outside
Mr Key’s cabinet. This Maori accommodation with National supercedes
the long period when Maori MPs were within Labour in Parliament. Mrs Turia
had left her ministerial post within the Clark Labour government to co-lead
and form
the Maori Party, sparked by Clark’s introduction of the foreshore
and seabed legislation. Maori and National entered their November 2008
relationship agreeing to review that legislation, not to abolish the Maori
seats and to consider constitutional change. Mrs Turia signaled her intent
to leave Parliament by the 2012 election. He co-leader Dr Pita Sharples
became Minister of Maori Affairs, and Mrs Turia, Minister for the Community
and Voluntary sector, in the Key led government.

UnitedFuture’s Peter Dunne, who had been revenue minister in the
Clark Labour led coalition, opted to support the prospective Key government,
and became revenue minister outside Mr Key’s cabinet.

Peter Dunne accentuates his centrist and commonsense approach. Mr Key,
by getting UnitedFuture and Maori Party confidence and supply agreements,
counterbalance’s the Act orientation. Should one or other support
parties oppose a National led government proposal, Mr Key can turn to
the other support party to help him pass contentious legislation.

Positions outside cabinet help parties maintain their identity, which
becomes electorally significant in later elections.

The loyal Opposition
Within minutes of her televised acknowledgement that the electorate had
sent her from the Prime Ministership, Helen Clark resigned as leader of
the Labour Party.

Her tenure – now ready to be worked over by the historians and
other pundits - produced more than a Labour Party without destructive
factionalism – it also contributed social democratic policies. Commentator
Colin James credits Ms Clark with success internationally, and a mixed
record at home. Former National MP Dr Marilyn Waring credits Ms Clark
with support for evidence based policy formation and outcomes based policies
for NZ. Dr Waring commends Ms Clark for a role as roving special representative
of the UN Secretary-general.

Helen Clark’s deputy Dr Michael Cullen, her finance minister, resigned
the day after her. His legacy includes the introduction of the NZ Superannuation
Fund and KiwiSaver, intended to increase New Zealanders’ savings
and provision for retirement income.

Three days after the election, Phil
Goff came from Labour’s caucus meeting unopposed as new
leader, offering to support the National government on national interest
policies but proposing also to hold it to account.

As soon as he became Labour leader Mr Goff said he would support a yet
to be defined consensus in changes to the Electoral
Finance Act introduced by Mrs King during the Clark years, and opposed
by National and others.

Mr Goff’s first ministerial appointment was in the 1984 Lange government.
He had been foreign minister early in the nine years of Clark Governments,
but had to stand down for Winston
Peters to become foreign minister in a deal negotiated by Ms Clark
with the NZ First leader.

Mr Goff and his deputy Annette King have substantial ministerial experience,
are backed by a caucus of experienced and new MPs, and are supported by
Ms Clark and Dr Cullen for an indefinite period as back benchers. Helen
Clark became Labour opposition spokesperson on foreign affairs, and Dr
Cullen, shadow leader of the House. Mr Goff and the leader of the Progressive
Party Jim Anderton – a former Labour Party president - agreed he
should be an opposition spokesperson on agriculture, following the conventions
established when the Labour-Progressive coalition operated in government.

The 49th New Zealand Parliament
Seven parties were elected to the 49th Parliament, which was called together
on 8 December 2008. The Key government proposed an active first 100 days
in office. Their initial proposals included legislation to help cushion
people who would become unemployed as a result of the consequences of
the global financial crisis. In between his speedy government formation
work and the calling of the 49th Parliament, Prime Minister Key, trade
minister Tim Groser and foreign minister Murray McCully were amongst leaders
to attend the APEC annual meeting, in Peru.

The topics at APEC included response to the global financial crisis –
a reality which will affect the Parliament, government and people of New
Zealand significantly.

Diversity in ParliamentThe composition
of members of the NZ Parliament has become increasingly diverese in
recent elections - reflecting change in the nation's
identity. In the 2003 and 2006 elections more Maori, and more women
entered Parliament. Women and men born in Asia, the Pacific and New Zealand
were elected.The character of the nation's population has become more
diverse, and the MMP system had a significant bearing on political parties'
efforts to help ethnically diverse citizens into Parliament.

National and Labour parties have succeeded in getting ethnically duiverse
Kiwis into Parliament. The Maori party has brought more Maori into Parliament.
Smaller parties have had ethnically diverse candidates.

The new MPs who moved the 2008 Address in Reply to the Speech from the
Throne illustrate how new Prime Minister Key has had his own hand on moves
to make the National Party more diverse. An MP born in Samoa, Peseta Sam
Lotu-iiga, and an MP born in Korea, Melissa Lee, movingly spoke about
their journeys to become Kiwis, and New Zealand Parliamentarians.

Find out more
Details of the official results for the New Zealand 2008 General-election
are available from www.electionresults.govt.nz.
The DecisionMaker reports on New Zealand’s 2005 General-election
are archived in www.decisionmaker.co.nz